The presidential candidate for the Movement for Change (M4C), Alan Kwadwo Kyerematen, has vowed to eliminate the COVID-19 levy he describes as the “disinfection levy”, introduced under President Akufo-Addo’s administration if he becomes president.
In a recent media interaction, the former Trade and Industry Minister criticized the government for continuing to impose the COVID-19 health recovery levy and disinfection levy, calling them unnecessary burdens on businesses.
Kyerematen argued that the high taxes make Ghana an expensive country to conduct business in and pledged to implement significant tax reductions.
Specifically targeting the continuation of the COVID-19 levy and the disinfection levy, Kyerematen questioned their relevance in the current economic climate.
“How is it that we are still charging the COVID-19 levy? Does it make sense? You are charging a disinfection levy. What are you disinfecting? So what are those taxes for? It is a lazy way of making up for failed policies in terms of making sure that leakages do not occur. There should be no excuses. Those taxes have no place in our economic environment, and that is why I have been bold to say, I will scrap them,” he declared.
He stated that his goal is to make Ghana the most affordable country for business in the region, promising a tax regime that would be the lowest in ECOWAS under his leadership.
Expressing his frustration with the current tax system, Kyerematen said, “All the money is going into people’s pockets. If you know the level of corruption, it is not just about the NDC but also the NPP. So we have no choice but to bring taxes down. I am an economist and a lawyer, but I think like an engineer. You cannot have an enterprise economy or a competitive economy with high taxes.”
He emphasized that reducing these “nuisance taxes” is crucial for supporting the private sector, explaining that his proposed tax regime would create a more competitive economic environment in Ghana.
“When we talk about low taxes, GTP is saying that with the kind of tax regime I am proposing, Ghana will have the lowest tax regime in the whole of ECOWAS during an Alan presidency.”
Also, John Mahama, the flagbearer of the National Democratic Congress (NDC) has assured that the next National Democratic Congress will also scrap the COVID-19 levy.
“You can also be assured that we will abolish the e-levy, remove the COVID Levy, and scrap the betting tax. I urge you to stand with us, stand for your dreams, and stand for a better Ghana,” he said.
On March 31, 2021, President Akufo-Addo assented to the COVID-19 Health Recovery Levy Act, 2021 (Act 1068), enabling the implementation of the levy at a rate of 1 per cent from May 1, 2021
There have been growing calls from the Minority in Parliament and various public sectors to eliminate taxes like the COVID levy and e-levy to ease the financial burdens on Ghanaians, who are grappling with a high cost of living.
Minister of State at the Finance Ministry, Abena Osei Asare, has however, highlighted the necessity of the levy, despite the official end of the pandemic.
She stressed the continuing need for funding to maintain the country’s supply of COVID-19 vaccines, which are crucial for building citizens’ immunity.
“COVID is no more, but we still feel the impact of COVID. There are many things that we did during COVID-19 that we are now having to take care of,” Osei Asare explained.